Starting in 2007, the new Canadian Children's Tax Credit came into effect. This tax credit will help encourage parents to enroll their child or children in organized physical activities. It is hoped that this will combat the alarming child obesity rates and improve overall health for kids around Canada. This new tax credit will help offset part of the costs of registration and membership fees.

The tax credit is available for up to $500 per child under age 16 for registration and membership fees for ongoing and supervised sports programs. The Federal Government has indicated that, in order to qualify for the tax credit, a program must be:

• ongoing (either a minimum of eight weeks duration with a minimum of one session per week or, in the case of children's camps, five consecutive days);
• supervised;
• suitable for children; and
• substantially all of the activities must include a significant amount of physical activity that contributes to cardio-respiratory endurance plus one or more of: muscular strength, muscular endurance, flexibility, or balance.

You can only claim fees that are related to the cost of registering a child in an eligible program of physical activity. So, starting in 2007, you should receive, or ask for, a receipt from organizations providing eligible programs of physical activity in which your child is enrolled. The sports organizations will determine the part of the fee that qualifies for the tax credit.

You should consult with your tax advisor as to details and terms and conditions on this exciting new tax credit. More information available via: http://www.cra-arc.gc.ca/whatsnew/fitness-e.html

If you have a child, you should look into purchasing health insurance as this can be a very good way to defray the health costs associated with raising your children. Healthcover.ca offers a variety of health insurance plans for Canadians from Manulife online.